Trump’s administration will create a more favorable regulatory and fiscal environment – London Business News | Londonlovesbusiness.com

Bitcoin’s 30% surge after the election is a clear manifestation of the “Trump trade,” as market expectations rise that the new administration will create a more favorable regulatory and fiscal environment.

Moves like the potential reshaping of the SEC and positioning Bitcoin as a reserve asset are drawing huge institutional investment.

Trump’s “America First” policy stance has also boosted confidence in the U.S. economic outlook, driving up risk appetite across markets. On November 7, the day following the election results, Bitcoin’s spot ETF saw a record net inflow of $1.376 billion—providing a major catalyst for price growth.

Given the Fed’s recent rate cuts, Bitcoin is likely to remain above the $85,000 mark this week, with any profit-taking expected to be moderate.

However, two key risks could limit Bitcoin’s upward trajectory. First, the market’s full digestion of Trump’s proposals will remain uncertain until control of the House and any internal party opposition are clarified. If a divided Congress emerges, or if significant resistance to cryptocurrency adoption persists, it could stall Bitcoin’s bullish momentum.

Second, if Trump delivers on his campaign promises, the U.S. could face larger deficits, skyrocketing inflation, and a potential reduction in immigrant labor. These factors could negatively impact job markets and slow economic growth, ultimately weighing on risk assets like Bitcoin.